After doing a 61.8 of the fib starting from the top, oil has been ranging at the golden ratio while also creating a bearish divergence on the MACD which confirms we have momentum shifts from longs to shorts. Our target is down to the 38.2 where we have a broken structure waiting to be retested
Since collapse we have had a good recovery with a very strong impulse and the 3 day continues to shoot green.
Now we are zoomed in on 12 hour timeframe. After the strong impulse, price action has started to range into something similar to an ascending wedge creating a test at the recent top with a tight price consolidation.
These are the perfect kinds of moves...
Oil has broken one of the diagonal support lines, while keeping the diagonal resistance intact.
Coupled with the strong horizontal structure just above the current price, and the consequent likely pullback from it, our target trade is a short.
As I said, the first diagonal support is already broken, thus:
Price under the pressure of fear of 2n wave and again lockdown.
Technically price sideways but coming expecting downside correction towards support level 35$
if price break 42$ and we can see next resistance level 45$ ( very less chance price go upside) as price coming from bottom 1$ currently overbought condition, correction required as indicator showing...
Took a short here on US Oil. Decent R:R and at a local top on HTF's (higher time frames) and pushing into a wedge.
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Oil is approaching an important horizontal structure, which gives a good probability of a retracement from it. Thus, our target trade is short.
1-if the diagonal support breaks>>
2-short with entry in the area outlined on the chart.
3-SL is ABOVE the dotted line....
From the top of the drop down, Price has just done a 61.8 Fib retracement and i expect a retracement back to at least $25 in order to create some sort of higher high before continuing upward as the recent move has been very much over bought without a major pullback. On the MACD we have a bearish divergence indicating that the buyers are losing steam and pulling...
The recent optimism in oil markets has left many analysts scratching their heads, with no real fundamental reason for the shift in sentiment.
Demand projections that suggest Asia or the world economy will be moving back to pre-pandemic levels anytime soon are laughable.
The only justifiable optimism for oil markets at the moment is the optimism surrounding...
Certainly with the fall two days ago a bounce could be expected but now a declining wedge appears to be forming. I have had to extrapolate the lower resistance but that's essentially what it will probably look like.
Oil is trading between the support and resistance, in a triangle.
Should there be a breakout>>wait for confirmation and short after pullback.
This is the trading plan for oil short. If the pair goes up, setup invalid.
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💰 LET'S GET INTO SOME OIL ANALYSIS!💰
1️⃣ First off SMASH that LIKE BUTTON & Give us a FOLLOW for DAILY ANALYSIS! ❤❤❤
(Overall Market Sentiment) 🐻 Bearish
- 3day Chart
- Doji Compression
- 3/3 EMA DOTS Red
Potential double top as oil takes a 5% hit today. Take entry based off indicators and add the breakout on the range drawn for extra confirmation on...